The Enterprise Upmarket Move: How Changing Client Profile Took Revenue from $96K to $147K
Katrina’s marketing consultancy jumped from $96K to $147K in 6 months with fewer clients and the same hours by moving upmarket using this repositioning playbook.
The Executive Summary
Marketing consultants stuck at the $96K monthly ceiling waste $918,000 in biennial opportunity by servicing high-touch SMB clients; transitioning to an “Enterprise Strategy” model allows for a 53% revenue increase while cutting work hours by half.
Who this is for: Founders and specialized consultants in the $80K–$120K/month range who are maxed out on capacity (50+ hours/week) with 12–20 high-maintenance clients.
The $918,000 Opportunity Loss: The “Client Profile Trap” forces founders to subsidize low-margin execution for small businesses, costing nearly $1M in potential revenue over 18 months compared to strategic enterprise contracts.
What you’ll learn: The Upmarket Repositioning Playbook—including the Client Profitability Matrix (Revenue per Hour), the Strategy-vs-Execution positioning shift, and the 90-Day Phase-Out Protocol.
What changes if you apply it: A 6-month transformation from a 52-hour week at $96K to a 25-hour week at $147K, increasing your effective hourly rate by 218% while shifting your role from “hands-on doer” to “strategic advisor.”
Time to implement: 6–9 months for a full transition; requires a 108-hour total investment across three phases: Profitability Analysis, Pipeline Building, and Client Migration.
The Client Profile Trap at $96K/Month
Katrina’s marketing consultancy was generating $96K monthly. Solid revenue. But she’d hit a ceiling. 14 clients at full capacity. Working 52 hours weekly. Can’t take more clients without hiring a team.
Here’s what that growth ceiling was actually hiding.
Katrina, marketing consultant, revenue $96K monthly, 14 clients, 52 hours weekly, stuck.
The problem in numbers:
Monthly revenue: $96,000 (14 clients)
Average client value: $96,000 ÷ 14 = $6,857 per client
Hours per client: 52 ÷ 14 = 3.7 hours weekly per client
Effective hourly rate: $96,000 ÷ 208 hours monthly = $462/hour
Growth capacity: Zero (maxed at 52 hours, can’t take more clients)
Why it mattered:
Revenue ceiling: Can’t grow without hiring (but margins too thin to justify)
Time trapped: Every client needs 3-4 hours weekly (non-negotiable)
Price ceiling: Charging $5,500-$8,000/month (market rate for SMB clients)
Scaling blocked: More revenue requires more hours or more clients (both maxed)
What caused it:
Wrong client profile. Katrina served small-to-medium businesses ($500K-$3M revenue). They needed hands-on execution, weekly check-ins, and constant support. High touch, high maintenance. Great clients. Wrong for scaling.
What Katrina tried (all failed to break the ceiling):
Raise prices: Increased rates $6,500 → $7,500/month. Result: 2 clients left, revenue dropped $96K → $91K. Had to reverse. SMB clients are price-sensitive at that range.
Add clients: Took on 2 more (14 → 16 clients). Result: Hours jumped 52 → 58 weekly, quality dropped, 3 clients complained. Unsustainable. Reduced back to 14.
Productize services: Created a “lite” package at $3,500/month for less support. Result: Existing clients wanted to downgrade, new clients wanted full service. Revenue cannibalization.
Hire contractor: Brought on a junior marketer at $4,000/month. Result: Clients wanted Katrina specifically, but the contractor sat idle. Lost $4K/month for 3 months before cutting.
None broke the ceiling because all tried to scale the same client profile. SMB clients need high touch. Can’t reduce hours per client without quality drop.
The cost:
18 months stuck at $92K-$98K monthly. Opportunity cost: $147K achievable (if repositioned to enterprise) vs. $96K actual = $51K monthly × 18 = $918K total opportunity loss from wrong client profile.
6-month upmarket repositioning. Shifted focus: SMB clients ($500K-$3M revenue, need execution) → Enterprise clients ($10M-$50M revenue, need strategy only).
Increased rates $6,857 average → $16,333 average. Reduced clients 14 → 9. Reduced hours per client 3.7 → 2.8. Revenue $96K → $147K. Same working hours, different clients. Here’s the complete playbook.
This case uses The Revenue Multiplier + The Offer Stack + The Delegation Map. Here's how strategic repositioning added $51K monthly without adding hours.
The 6-Month Upmarket Transition
Now that you’ve seen the ceiling, here’s exactly what Katrina built month by month.
6-month transition in 3 phases:
Phase 1 (Months 1-2): Client Profile Analysis + Positioning Shift
Analyzed the existing 14 clients by profitability/effort
Identified ideal client profile (enterprise vs. SMB)
Repositioned messaging and services
28 hours total investment
Phase 2 (Months 3-4): Enterprise Pipeline Build
Targeted $10M-$50M revenue companies only
Built an enterprise sales process (not SMB transactional)
Closed first 3 enterprise clients
48 hours total investment
Phase 3 (Months 5-6): Client Transition + Optimization
Phased out 8 SMB clients (kept 6 best)
Added 3 more enterprise clients (9 total)
Optimized delivery for enterprise needs
32 hours total investment
Total time: 108 hours over 6 months. Zero new hires. Revenue: $96K → $147K (+53%).
Month 1: Client Profitability Analysis
Katrina started by analyzing her existing 14 clients systematically.
The profitability matrix:
For each client, calculated:
Monthly revenue: $_____ per client
Monthly hours: _____ hours per client
Effective rate: Revenue ÷ hours = $_____ /hour
Complexity: High / Medium / Low (subjective)
Growth potential: Can they afford higher rates? Y/N
Total: $96,000 revenue, 208 hours monthly (52 hours weekly)
Pattern identification:
High-revenue, low-effort clients (keep):
Client H: $9,000, 12 hours, $750/hour, low complexity
Client N: $8,100, 11 hours, $736/hour, low complexity
Client F: $7,200, 10 hours, $720/hour, low complexity
Client D: $8,500, 14 hours, $607/hour, growth potential
Client B: $7,500, 12 hours, $625/hour
Client K: $8,200, 15 hours, $547/hour, growth potential
6 keepers: $48,500 revenue, 74 hours (average $656/hour)
Low-revenue, high-effort clients (phase out):
Client E: $6,000, 20 hours, $300/hour (worst rate)
Client L: $5,900, 19 hours, $311/hour
Client G: $5,800, 18 hours, $322/hour
Client A: $8,000, 18 hours, $444/hour (high complexity)
Client C: $5,500, 16 hours, $344/hour
Client I: $6,500, 16 hours, $406/hour
Client J: $7,000, 14 hours, $500/hour
Client M: $6,800, 13 hours, $523/hour
8 phase-outs: $47,500 revenue, 134 hours (average $355/hour)
The insight:
6 clients generating $48,500 in 74 hours ($656/hour average). 8 clients generating $47,500 in 134 hours ($355/hour average). Nearly the same revenue, 81% more hours required.
Question: What if I replace those 8 low-efficiency clients with 3-4 high-efficiency clients at enterprise rates?
Month 2: Enterprise Client Profile Definition
Katrina analyzed the 6 keeper clients to identify patterns.
What high-efficiency clients had in common:
Company size:
Client H: $22M annual revenue
Client N: $18M annual revenue
Client F: $15M annual revenue
Client D: $12M annual revenue
Client B: $8M annual revenue
Client K: $11M annual revenue
Average company size (keepers): $14.3M revenue
Company size (phase-outs):
Client E: $1.2M annual revenue
Client L: $800K annual revenue
Client G: $2.1M annual revenue
Average: $1.5M revenue
Insight: Larger companies ($10M+) need less hand-holding, pay better, and have lower complexity.
What they buy differently:
SMB clients ($500K-$3M):
Need: Execution + strategy (hands-on doing)
Meetings: Weekly check-ins (high touch)
Decisions: Slow (founder has to approve everything)
Scope creep: Constant (”can you just also...”)
Price sensitivity: High (every dollar matters)
Enterprise clients ($10M-$50M):
Need: Strategy only (they have internal teams to execute)
Meetings: Bi-weekly or monthly (low touch)
Decisions: Fast (dedicated budgets, decision authority)
Scope: Clear (contracts specify deliverables)
Price sensitivity: Low (care about ROI, not cost)
New ideal client profile:
Company revenue: $10M-$50M annually
Team size: 20-100 employees
Marketing team: Yes (internal team exists)
Role: Head of Marketing or VP Marketing (has budget authority)
Need: Strategic consulting (not execution)
Budget: $12K-$20K monthly (approved in advance)
Decision speed: 2-4 weeks (vs. 8-12 weeks SMB)Positioning shift required:
Old (SMB positioning): “Full-service marketing for growing businesses. We handle everything from strategy to execution.”
New (Enterprise positioning): “Marketing strategy consulting for $10M-$50M companies with internal teams. We provide the strategic direction, your team executes.”
Month 3: Enterprise Pipeline Build
Katrina shifted all outreach to enterprise-only targets.
Lead source strategy:
Source 1: LinkedIn targeting
Target title: VP Marketing, Head of Marketing, CMO
Company size: 50-500 employees (proxy for $10M-$50M revenue)
Connection requests: 20 daily (qualified only)
Message: “I help $10M-$50M companies optimize marketing strategy. Your team at [COMPANY] caught my attention because [SPECIFIC REASON]. Would a 20-min strategy conversation be useful?”
Month 3 LinkedIn results:
Connections sent: 400
Accepted: 180 (45% acceptance)
Responses: 42 (23% response from accepted)
Calls booked: 18 (43% of responses)
Source 2: Warm referrals (from 6 keeper clients)
Asked each of the 6 high-value clients: “Do you know any VPs of Marketing at $10M-$50M companies who might benefit from strategic marketing consulting? Happy to offer them a complimentary strategy session.”
Referral results:
6 clients asked
9 referrals received (avg 1.5 per client)
7 agreed to intro call (78%)
Total Month 3 pipeline: 18 LinkedIn calls + 7 referrals = 25 enterprise conversations
Enterprise sales process (different from SMB):
SMB process (old):
Discovery call → Proposal → Close
Timeline: 2-4 weeks
Close rate: 60% (easier sale, lower value)
Enterprise process (new):
Discovery call → Strategy session → Proposal → Stakeholder review → Close
Timeline: 4-8 weeks (longer sales cycle)
Close rate: 30-40% (harder sale, higher value)
Month 3 enterprise sales:
From 25 conversations:
Discovery calls: 25
Strategy sessions: 16 (64% conversion)
Proposals sent: 11 (69% conversion from session)
Closed: 3 (27% close rate from proposal)
3 enterprise clients closed:
Client O: $15,000/month
Company: $28M revenue SaaS company
Scope: Marketing strategy + quarterly planning
Hours: 12 monthly (bi-weekly meetings + quarterly deep-dives)
Start: Month 4
Client P: $18,000/month
Company: $42M revenue manufacturing company
Scope: Go-to-market strategy for new product line
Hours: 10 monthly (monthly strategy sessions)
Start: Month 4
Client Q: $12,000/month
Company: $16M revenue professional services firm
Scope: Marketing department structure + systems
Hours: 14 monthly (weekly 1-hour calls)
Start: Month 4
Total new revenue: $45,000 monthly (3 clients, 36 hours)
Effective rate: $45,000 ÷ 36 = $1,250/hour
Month 4: Client Transition Plan
With 3 enterprise clients starting Month 4, Katrina had to make room.
Current state (start of Month 4):
14 existing SMB clients: $96,000, 208 hours
3 new enterprise clients: $45,000, 36 hours
Total if kept all: $141,000, 244 hours (61 hours weekly)
Problem: Can’t work 61 hours weekly. Need to phase out 8 SMB clients to make room.
Phase-out strategy:
Option A: Fire all 8 immediately
Pros: Fast, clean break
Cons: Revenue drops $96K → $48.5K immediately before stabilizing at $93.5K with the enterprise
Option B: 90-day transition
Pros: Smooth revenue transition
Cons: 3 months of overwork
Katrina chose Option B: 90-day transition with 30-day notice to each SMB client.
Month 4 phase-out notifications:
Sent to 8 low-efficiency clients:
“Hi [Client],
I’m writing to let you know I’ll be transitioning my consultancy to focus exclusively on enterprise clients ($10M+ companies) over the next 90 days.
This means I’ll be completing our engagement on [DATE, 90 days from now]. I’m committed to ensuring a smooth transition for you.
Options:
I can help you find and onboard a replacement consultant (my recommendation: [NAME])
We can create a 90-day transition plan to hand off to your internal team
If you’re open to it, I can refer you to [COLLEAGUE], who specializes in businesses of your size
Let’s schedule a call this week to discuss the best path forward.
I’ve genuinely enjoyed working with you and want to make sure you’re set up for continued success.
Best, Katrina”
Client responses:
5 of 8 accepted referral to other consultant (smooth transition)
2 of 8 wanted a 90-day transition plan (Katrina helped build internal capability)
1 of 8 unhappy (wanted to stay, but accepted the decision)
Revenue impact over transition:
Month 4: $96K (14 SMB) + $45K (3 enterprise) = $141K (overwork month)
Month 5: $72K (10 SMB, lost 4) + $60K (5 enterprise, added 2 more) = $132K
Month 6: $48.5K (6 SMB remaining) + $98K (9 enterprise, added 4 more) = $146.5K
Months 5-6: Enterprise Client Acquisition Continued
Month 5 additions (2 clients):
Client R: $14,000/month
Company: $19M revenue e-commerce
Hours: 11 monthly
Client S: $16,000/month
Company: $31M revenue healthcare services
Hours: 13 monthly
Month 6 additions (4 clients):
Client T: $15,500/month
Company: $25M revenue tech company
Hours: 12 monthly
Client U: $13,000/month
Company: $14M revenue consulting firm
Hours: 10 monthly
Client V: $17,000/month
Company: $38M revenue retail
Hours: 14 monthly
Client W: $12,500/month
Company: $12M revenue logistics
Hours: 9 monthly
Final client roster (Month 6):
6 retained SMB clients (high-efficiency):
Clients H, N, F, D, B, K
Revenue: $48,500
Hours: 74 monthly
9 enterprise clients:
Clients O, P, Q, R, S, T, U, V, W
Revenue: $98,500 (9 clients, avg $10,944/client)
Hours: 95 monthly
Final Month 6 State:
Katrina phased out all 14 SMB clients and replaced them with 9 enterprise-only clients.
9 enterprise clients total:
Client O: $15,000 (12 hours monthly)
Client P: $18,000 (10 hours monthly)
Client Q: $12,000 (14 hours monthly)
Client R: $14,000 (11 hours monthly)
Client S: $16,000 (13 hours monthly)
Client T: $15,500 (12 hours monthly)
Client U: $13,000 (10 hours monthly)
Client V: $17,000 (14 hours monthly)
Client W: $16,500 (11 hours monthly)
Total: 9 clients × avg $16,333 = $147,000 monthly
Hours: 107 monthly (25 hours weekly)
Transformation:
Clients: 14 → 9
Revenue: $96K → $147K
Hours weekly: 52 → 25 (reduced by half through higher-value clients)
Hours per client: 3.7 → 2.8 weekly
Enterprise clients need less hand-holding than SMB clients.
The Upmarket Positioning Framework You Can Replicate
Here’s the generic framework Katrina used—adapted for your business.
The 3-Phase Upmarket System:
Phase 1: Client Profile Analysis (identify who to keep, who to replace)
Analyze all existing clients by profitability per hour
Identify common patterns in high-value, low-effort clients
Define ideal client profile (typically larger companies, $10M+)
Decide which clients to phase out vs. retain
Phase 2: Positioning Shift + Enterprise Pipeline (target new profile)
Reposition services for enterprise buyers (strategy vs. execution)
Build enterprise-specific sales process (longer cycle, higher value)
Generate enterprise leads (LinkedIn, referrals, partnerships)
Close first 3-5 enterprise clients
Phase 3: Client Transition (phase out old, scale new)
Notify phase-out clients with 90-day transition
Continue enterprise acquisition
Optimize delivery for enterprise needs (less touch required)
Stabilize at a new revenue level with fewer, better clients
When to use this framework:
If revenue is stuck at $80K-$120K serving 12-20 clients → Client profile mismatch likely
If working 45-55 hours weekly with no capacity → Can’t scale the same client type
If price increases fail (clients leave) → Serving a price-sensitive segment
If hiring would kill margins → Need fewer, higher-value clients instead
Success metrics:
Month 2: Ideal client profile defined (company size, need type, budget)
Month 4: First 3 enterprise clients closed at 2-3x previous rates
Month 6: 50%+ revenue from enterprise, total revenue up 30-50%
Month 12: Fully transitioned to enterprise-only, revenue up 50-100%
Timeline expectations:
Phase 1 (Analysis): 4-6 weeks
Phase 2 (Pipeline build): 8-12 weeks
Phase 3 (Transition): 12-16 weeks
Total: 6-9 months to full transition
The Three Critical Moves
Here’s the 80/20. Three moves that delivered 80% of Katrina’s transformation.
Move 1: Client Profitability Matrix (Not Revenue Only)
Most consultants optimize for total revenue. Katrina optimized for revenue per hour.
The analysis:
For each client, calculated:
Effective hourly rate = Monthly revenue ÷ Monthly hours
Client A: $8,000 ÷ 18 hours = $444/hour
Client H: $9,000 ÷ 12 hours = $750/hourInsight: Client H is worth $750/hour. Client A is worth $444/hour. Client A has a higher revenue ($8,000 vs. $9,000 is close), but Client H has a 69% better rate.
The pattern:
The top 6 clients averaged $656/hour. Bottom 8 clients averaged $355/hour. 85% higher rate from top clients.
Why the profitability matrix worked:
Revealed hidden inefficiency. $47,500 revenue from the bottom 8 clients required 134 hours (nearly 3x the hours of the top 6 for similar revenue).
Enabled strategic decision. Replace 8 low-efficiency clients with 3-4 high-efficiency enterprise clients = same revenue, half the hours.
Time investment:
Client tracking setup: 2 hours
Data collection (4 weeks): 1 hour weekly = 4 hours
Analysis: 3 hours
Total: 9 hours
ROI: 9 hours → identified $51K monthly opportunity = $6,800/hour analytical value.
Replication checklist:
Track actual hours per client for 4 weeks
Calculate monthly revenue per client
Calculate effective hourly rate (revenue ÷ hours)
Rank clients by hourly rate (highest to lowest)
Identify the bottom 30-50% (lowest rates)
Analyze: What makes low-rate clients different?
Move 2: Enterprise Positioning (Strategy-Only Vs. Execution)
After identifying the ideal client size ($10M+), Katrina repositioned services.
Old positioning (SMB):
Service: Full-service marketing (strategy + execution)
Value prop: “We handle everything so you don’t have to”
Buyer: Founder or small team (no marketing dept)
Delivery: High-touch (weekly meetings, constant communication)
New positioning (Enterprise):
Service: Strategic marketing consulting (strategy only, no execution)
Value prop: “Strategic direction for your internal marketing team”
Buyer: VP Marketing or CMO (has team and budget)
Delivery: Low-touch (bi-weekly or monthly strategy sessions)
Why this shift mattered:
SMB clients need execution because:
No internal marketing team (can’t execute without you)
Limited budget (can’t afford strategy + separate execution)
Founder-led (wearing all hats, need done-for-you)
Enterprise clients need a strategy because:
Internal team exists (they execute, need direction)
Larger budgets (can pay for strategic guidance)
Dedicated roles (VP Marketing accountable for results)
Service restructure:
SMB package (old):
Monthly fee: $6,000-$8,000
Includes: Strategy + execution + management
Hours: 12-20 monthly per client
Rate: $300-$667/hour
Enterprise package (new):
Monthly fee: $12,000-$20,000
Includes: Strategy + quarterly planning + advisor role
Hours: 8-14 monthly per client
Rate: $857-$2,500/hour
Pricing justification to enterprise buyers:
“Our consulting fee is $15,000 monthly. Your internal team executes (salary cost you’re already paying). We provide strategic direction at $300/hour × 50 hours, if you hire a consultant for execution, totaling $15,000. You get strategic expertise without execution overhead.”
Why enterprise positioning worked:
Larger companies value strategic expertise over execution. They have teams to execute. They lack strategic direction.
Higher willingness to pay. $15,000/month is 0.3% of $5M quarterly revenue for a $20M company. Immaterial budget line.
Time investment:
Messaging rewrite: 6 hours
Service package redesign: 4 hours
Website/materials update: 8 hours
Total: 18 hours
ROI: 18 hours → repositioned to $12K-$20K clients vs. $6K-$8K = $2,833/hour invested.
Replication checklist:
Identify ideal client company size (revenue, employees)
Determine what they need (strategy vs. execution vs. both)
Restructure services to match their needs
Price based on value to them (not cost to you)
Position as strategic advisor (not service provider)
Target decision-maker with budget authority (VP, C-level)
Move 3: 90-Day Transition (Not Cold Turkey)
When phasing out 8 SMB clients, Katrina gave a 90-day notice.
Why 90 days:
Too short (30 days):
Clients feel abandoned
No time for proper handoff
Reputation damage risk
Too long (6+ months):
Delays revenue transformation
Overwork extended period
Reduces urgency
90 days = optimal:
Enough time for the client to find a replacement
Katrina can help with the transition
Maintains relationship/reputation
Revenue bridge (smooth, not cliff)
The transition process:
Day 1: Notification
Email to 8 phase-out clients
Explain strategic shift (enterprise focus)
Offer 90-day transition support
Present 3 options (referral, transition plan, internal handoff)
Days 2-30: Transition planning
Meet with each client
Document current systems/processes
Create transition playbook
Identify a replacement consultant or internal owner
Days 31-60: Knowledge transfer
Train replacement or internal team
Hand off active projects
Ensure continuity
Days 61-90: Final support
Available for questions
Monitor smooth handoff
Complete final deliverables
Results:
5 of 8 clients accepted referral (smooth transition)
2 of 8 clients built internal capability (positive outcome)
1 of 8 unhappy but understood (minimal damage)
0 of 8 left negative reviews or badmouthed
Why the 90-day transition worked:
Preserved relationships. Many referred colleagues later (3 enterprise referrals came from former SMB clients).
Maintained revenue during pipeline build. $96K → $141K (Month 4 overlap) → $132K (Month 5) → $147K (Month 6). Smooth curve, not a crash.
Time investment:
Transition planning: 12 hours (8 clients × 1.5 hours each)
Knowledge transfer: 24 hours (8 clients × 3 hours each)
Final handoffs: 8 hours
Total: 44 hours over 90 days
ROI: 44 hours → preserved reputation + generated 3 enterprise referrals worth $45K/month = priceless.
Replication checklist:
Give 60-90 day notice (not 30, not 180)
Offer transition support (don’t abandon)
Provide referrals to peers (help them succeed)
Document everything (make handoff easy)
Stay available during transition (answer questions)
End on good terms (they’ll refer later)
The compound effect:
Each move stacked:
Profitability analysis: Identified 8 clients to replace (9 hours invested)
Enterprise positioning: Attracted $12K-$20K clients (18 hours invested)
90-day transition: Smooth revenue curve, preserved reputation (44 hours invested)
Total from 3 moves: 71 hours invested, $51K monthly increase, reputation intact, referral pipeline built.
The Hidden Problems Katrina Hit
Here’s what almost derailed the upmarket move—and how she solved it.
Problem 1: Longer sales cycle killed Month 3 momentum
When it appeared: Month 3 (enterprise pipeline build)
What happened:
SMB sales: 2-4 weeks from first call to close. Enterprise sales: 6-10 weeks. Katrina’s pipeline went dry in Month 3 because nothing closed fast enough.
Projected 5 enterprise closes in Month 3. Actual: 3 closes. Revenue shortfall.
Why it happened:
Enterprise sales involve multiple stakeholders. VP Marketing likes you, but needs CFO approval. CFO needs to review the proposal. The board needs to approve the budget. 6-10 weeks minimum.
The fix:
Built 2x the pipeline needed. If needed, 5 closes, generated 10 opportunities (50% buffer).
Started outreach 8 weeks before revenue needed (not 4 weeks like SMB).
Result: Month 4 had 6 closes (from the Month 2-3 pipeline). Timing smoothed out.
Problem 2: First enterprise proposal rejected (priced too low)
When it appeared: Month 3 (first enterprise proposal)
What happened:
Katrina pitched $10,000/month to $35M company. They said, “That seems low. What’s the catch?”
Lost the deal because the LOW price signaled low value in the enterprise world.
Why it happened:
Used SMB pricing logic ($6K-$8K range, so $10K felt like stretch). Enterprise buyers expect $15K-$30K for strategic consulting.
The fix:
Repriced next proposals at $15,000-$18,000/month (50-80% increase).
Justification: “Our strategic consulting prevents $500K-$2M in wasted marketing spend annually. $15K monthly = $180K annually = 9-36% of wasted budget saved. 10x+ ROI.”
Result: 40% close rate at $15K-$18K vs. rejection at $10K. Higher price = higher perceived value.
Problem 3: Tried to keep all 14 SMB clients plus enterprise (burnout)
When it appeared: Month 4 (overlapping clients)
What happened:
Month 4: 14 SMB + 3 enterprise = 244 hours monthly (61 hours weekly). Katrina burned out in 3 weeks. Quality dropped. 2 SMB clients complained.
Why it happened:
Wanted to avoid revenue dip. Tried to keep everyone while building the enterprise.
The fix:
Phased out immediately. Sent 90-day notices to 8 SMB clients at the end of Month 4. Can’t sustain 61-hour weeks.
Accepted temporary revenue dip ($141K → $132K in Month 5) to avoid burnout.
Result: Month 5-6 rebuilt to $147K sustainably at 25 hours weekly (vs. 52 before).
Problem 4: Enterprise clients expected instant availability (like SMB)
When it appeared: Month 5 (enterprise onboarding)
What happened:
Enterprise Client S expected weekly calls and daily Slack access (like SMB clients got). Katrina said, “Our model is bi-weekly strategy sessions, email for urgent items.”
Client pushed back: “We’re paying $16,000/month. We need more access.”
Why it happened:
Didn’t set expectations clearly in the proposal. Client assumed high-touch service.
The fix:
Revised proposal template to specify:
Bi-weekly 60-minute strategy sessions (scheduled in advance)
Monthly written strategy brief (deliverable)
Email response within 48 hours (not instant)
Quarterly deep-dive planning session (3 hours)
Presented as “strategic advisor” model (not “on-demand consultant”).
Result: Client accepted boundaries. Realized strategic guidance ≠ constant availability.
The Before/After Transformation
Here’s the complete change in 6 months.
Before (Month 0):
Revenue: $96,000 monthly
Clients: 14 clients (SMB)
Average client: $6,857/month
Hours weekly: 52 hours
Hours per client: 3.7 weekly
Effective rate: $462/hour
Growth capacity: Zero (maxed out)
Client profile: $500K-$3M revenue companies (need execution)
After (Month 6):
Revenue: $147,000 monthly (+53%)
Clients: 9 clients (enterprise)
Average client: $16,333/month (+138%)
Hours weekly: 25 hours (-52%)
Hours per client: 2.8 weekly (-24%)
Effective rate: $1,471/hour (+218%)
Growth capacity: High (working half the hours)
Client profile: $10M-$50M revenue companies (need strategy)
Financial transformation:
Revenue increase: $96,000 → $147,000 = +$51,000 monthly (+53%)
Annual impact: $51,000 × 12 = $612,000 additional annually
Hourly rate: $462 → $1,471 = +$1,009/hour (+218% efficiency)
Client economics:
Before:
14 clients × $6,857 = $96,000
208 hours monthly (52 weekly)
$462/hour effective
After:
9 clients × $16,333 = $147,000
100 hours monthly (25 weekly)
$1,471/hour effective
Work-life transformation:
Hours freed: 52 → 25 weekly = 27 hours freed (52% reduction)
Value of freed time: 27 hours × 52 weeks = 1,404 hours annually freed
Quality of life: Massively improved (half the hours, 53% more revenue)
Growth capacity unlocked:
Before: Maxed at 52 hours, can’t take more clients
After: Working 25 hours, capacity for 5-10 more enterprise clients potentially
Theoretical max (if scaled to 52 hours): 52 ÷ 2.8 hours per client = 18 enterprise clients possible
Revenue potential: 18 × $16,333 = $294,000 monthly (if worked same hours)
What This Means for Your Client-Dependent Business
A high client count doesn’t mean a healthy business. Katrina served 14 clients but was trapped.
If you’re serving 12-20 clients at $80K-$120K monthly, you likely have the wrong client profile. Can’t scale the same client type without hiring a team.
The fix: Upmarket repositioning. Same services, different buyer (larger companies, bigger budgets, less hand-holding).
Your next steps:
Analyze existing clients by profitability per hour (revenue ÷ hours). Rank from highest to lowest. Identify the bottom 30-50%.
Find a pattern in top clients (company size, industry, need type). Define the ideal client profile. Typically: $10M+ revenue, have internal teams, need strategy, not execution.
Reposition services for enterprise buyers. Strategy consulting, not full-service. $12K-$20K/month price range. Low-touch delivery (bi-weekly or monthly).
Build enterprise pipeline (LinkedIn, referrals, partnerships). Close first 3-5 enterprise clients. Phase out bottom-tier SMB clients with a 90-day transition.
Timeline: 6-9 months from analysis to full transition. Investment: 80-120 hours. Results: 30-60% revenue increase, typical with 30-50% hour reduction.
Katrina went $96K → $147K while cutting hours 52 → 25 weekly. Your version depends on the current client mix and market. But the framework works for any consultant/agency serving too many small clients.
Analyze profitability. Reposition upmarket. Phase out low-efficiency. Growth follows.
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